Grayscale Q3 Crypto List: AVAX Added, XRP and Cardano Still Excluded

Grayscale’s Q3 crypto list is out, and it’s a mixed bag, with Avalanche and Morpho included, while XRP and Cardano are excluded. The investment giant has reshuffled its Top 20 crypto list for the quarter, reflecting shifts in the crypto landscape and emerging opportunities. What’s behind this continued exclusion despite recent developments?

XRP and ADA Left Out: Grayscale’s Surprising Exclusions in Q3 List

On Friday, Grayscale Investments released the updated Q3 list of Top 20 crypto assets. The company removed Lido DAO (LDO) and Optimism (OP) from its list, making room for new additions, Avalanche (AVAX) and Morpho (MORPHO). At the same time, the investment giant has decided to maintain its exclusion of prominent altcoins XRP and Cardano (ADA).

Notably, the omission of XRP and ADA, alongside LDO and OP, is surprising given their significant growth potential in light of recent developments. Despite both AVAX and OP being smart contract protocols, Grayscale found that this sector remained relatively stable, with little growth or decline.

The increasing odds of ETFs for these assets add another layer of curiosity to Grayscale’s exclusion decision. According to Bloomberg analysts, XRP and Litecoin ETFs have a 95% chance of approval.

It is also noteworthy that Grayscale’s Q3 crypto list arrives just before the SEC’s anticipated decision on spot Avalanche and Cardano ETFs, adding to the timing’s significance. The SEC’s decision, expected on July 13, was previously delayed by 45 days, as reported by CoinGape.

In response to the asset manager’s crypto list release, the XRP and ADA prices saw significant declines of 4.8% and 2.9% in a day. Over the past month, the tokens have experienced substantial dips of 9% and 26%, respectively.

Grayscale Includes 20 Tokens in Quarter 3

Interestingly, Grayscale regularly releases crypto lists, revising its Top 20 alongside Assets Under Consideration and other sector-specific evaluations. Notably, the manager employs a multifaceted approach to evaluate its preferred altcoins, monitoring sector performance, and identifying market trends.

Significantly, the Grayscale Q3 crypto list holds 20 tokens, including the newly added Morpho and Optimism. While Morpho has had significant growth recently, the investment giant believes that the token could outperform other major crypto assets. Grayscale noted,

This past month, Morpho announced Morpho V2, designed to bring DeFi to traditional financial institutions. Grayscale Research is optimistic about the future of on-chain lending activity, and Morpho seems well positioned to potentially capture a meaningful share of that growth.

Other tokens in the list include Bitcoin, Ethereum, Solana, Hyperliquid, Sui, Chainlink, Avalanche, Uniswap, Aave, Bittensor, and more.